Tag Archives: Ravn Air Group

RavnAir Alaska and PenAir are sold to FLOAT Shuttle of Los Angeles

Ravn Air Group has made this updated announcement:

Approval for the sale of all 12 lots of Ravn Air Group assets was granted today at the final Bankruptcy Court hearing – including, in a last minute turn of events, Ravn Air Group’s two Anchorage- based Part 121 passenger air carriers (“RavnAir Alaska” and “PenAir”) which were sold as a “going concern” along with many of the assets of these two companies. The successful bidder of RavnAir Alaska and PenAir was FLOAT Shuttle, a Los Angeles–based air commuter service.

FLy Over All Traffic (FLOAT). FLOAT is an air shuttle service to beat traffic in the Greater Los Angeles area. The current service is operated by Southern Airways Express.

FLOAT Shuttle has suspended operations:

“Due to federal, state, county, and local mandates to “stay-at–home” and eliminate non-essential travel, FLOAT has paused flight operations.”

FLOAT Shuttle Route Maps:

Ravn Air Group fails to sell its two Part 121 airlines (RavnAir Alaska and PenAir)

Ravn Air Group made this announcement:

The auction on July 8, 2020 for Ravn Air Group’s two Anchorage-based Part 121 passenger air carriers (RavnAir Alaska and PenAir) was adjourned without a sale after Ravn’s secured creditors (the Lenders) and Unsecured Creditors Committee determined that bids received were not high enough to be acceptable.

As a result, the Company will only seek approval at tomorrow’s Bankruptcy Court hearing of the other 11 asset lots successfully sold at yesterday’s auction that was focused primarily on RavnAir Connect Part 135 aircraft and facilities used in rural Alaska operations.

“While it was disappointing that no one has yet emerged as a successful bidder of our two remaining airlines, the auction process will not be concluded until our Lenders decide to end the formal court- approved sales process, make the Plan of Liquidation effective, and place the remaining airlines and their respective assets into a liquidating trust.

Given those facts, we remain optimistic that a new owner will still be able to step in and restart one or more of our two Part 121 airlines,” said Dave Pflieger, Ravn’s President & CEO.

PenAir aircraft photo gallery:

PenAir aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=vSNHwQ&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

Ravn Air Group to be liquidated

Ravn Air Group made this announcement:

Bankruptcy Court Approves a Plan of Liquidation That Enables an Auction and Sales Process:

The Honorable Brendan L. Shannon in the United States Bankruptcy Court for the District of Delaware on June 25 approved a Plan of Liquidation that also includes a sales process for “going concern” bidders who are interested in buying the company and its three airlines during an upcoming auction that will take place following the 4th of July holiday weekend.

The auction will offer Ravn, with its secured lenders, an opportunity to sell the company and all or a substantial portion of its assets in a sale that would be approved by the Court on July 9th. Leading into today’s hearing approximately 30 bidders expressed interest in buying all or some of the Air Group’s assets. Of these, five strategic buyers submitted bids to buy the entire Air Group.

“The outcome of today’s hearing turned out as we had hoped, and we are excited that our employees, our customers, and the many communities we serve will now have a very real opportunity to see Ravn back in the skies later this summer. While this has been a very difficult process for everyone affected, we strongly believe it will be a success for our creditors and all Alaskans if our upcoming auction leads to a successful buyer who wants to preserve the vital jobs and essential air service that Ravn previously provided to over 115 different communities in our state,” said Dave Pflieger, Ravn’s President & CEO.

A specific date for the auction has not yet been set, but it will occur prior to the July 9th hearing. Should there not be a sale of the company as a “going concern,” the Chapter 11 Liquidation Plan that the Court approved today calls for Ravn’s assets to be put into a Liquidation Trust and sold by the Liquidation Trustee.

Before it filed for Chapter 11 protection on April 5, 2020, following a 90% drop in bookings and revenue due to the arrival of COVID-19 in Alaska, and a resultant state-mandated travel ban to slow the spread of the Pandemic, Ravn was Alaska’s largest and most vital regional air carrier. The company and its three separate airlines were supported by over 1,300 employees, and it carried passenger, mail, freight, and charter customers to more than 115 destinations throughout Alaska.

Headquartered in Anchorage, Ravn Air Group operated a safe and highly reliable fleet of 72 aircraft on more than 400 flights per day, annually carrying over 750,000 passengers per year, from hubs and communities including Anchorage, Fairbanks, Galena, Barrow, Nome, Kotzebue, Unalakleet, Bethel, Aniak, St. Mary’s, McGrath, Dillingham, and King Salmon. In late 2018, Ravn acquired Peninsula Airways and its five Saab 2000s as part of a sale process that ended PenAir’s two-year financial bankruptcy and added the company to the Ravn Air Group portfolio. Later, in 2019, Ravn Air Group started Essential Air Service flying to St. Paul in the Pribilof Islands with its highly reliable 29 & 37 seat DHC-8 (Dash 8) aircraft.

Ravn Air Group’s two Part 121 air carriers are FAA-approved Safety Management System (“SMS”) airlines. In addition, in May 2018 and again in April 2020, RavnAir Alaska became one of a few regional airlines in the U.S. to pass the challenging International Air Transportation Association’s (IATA) Safety and Operational Audit (IOSA), and in 2019 RavnAir Alaska became the first and only IOSA-approved Part 121 regional airline in the State of Alaska.

RavnAir files for bankruptcy, all 72 aircraft parked

RavnAir Group filed for Chapter 11 reorganization on April 5, 2020. All 72 aircraft are parked.

The airline issued this statement:

RavnAir Group on April 5 announced that due to the global COVID-19 pandemic and the unprecedented loss of 90% of passenger revenue at all three of its airlines (RavnAir Alaska, PenAir, and RavnAir Connect) it must, for the time being:

Park all seventy-two (72) of its aircraft;
Stop all operations; and
Temporarily lay off all remaining staff until the company is in a position to cover
the costs of rehiring, resuming flights, and operating to the many communities it serves throughout our State.

Because of the company’s critical need for additional funding, Ravn has also filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Ravn’s lenders have agreed to provide financing during the pendency of the Chapter 11.

This filing will allow the company to “hit pause” and await word on its Federal CARES Act grant applications and other sources of financial assistance that will allow it to get through the Coronavirus crisis and successfully restart operations. The company is also actively seeking private investment as well.

Ravn has been in contact with the CEOs of other air carriers around the State since last Thursday, April 2nd to help them establish new or replacement air service wherever possible, and it will continue those efforts during this uncertain period of time before the company can resume its own operations.

The CEO also issued this statement:

RE: Ensuring Our Future Together
To our valued Customers and Frequent Flyers,

As you know, the entire airline industry has been devastated by the COVID-19 pandemic and vitally necessary travel bans.

Unfortunately, RavnAir Group, the largest regional airline in our state, has been similarly affected by this crisis. It is for that reason that today we made the extremely difficult decision to ground all seventy-two (72) of our aircraft; stop all operations; temporarily lay-off all of our employees; and seek Chapter 11 protection in order to obtain immediate Debtor-in-Possession (DIP) funding.

We took these actions to ensure our airline has a future, and to give us time to “hit pause” while we seek federal CARES Act grants and other sources of financial assistance that will allow us to weather the Coronavirus pandemic and emerge successfully once it has passed.

How long we must wait is uncertain, but I want to assure you that everyone here at Ravn is doing everything possible to get back in the air very soon, so we can resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the State of Alaska.

For those of you who were scheduled to fly this week or in the weeks ahead, please accept my deepest apologies for this sudden, but vitally necessary, decision to cancel all flights until further notice. With our call center now closed, I would request that you contact us through our website (www.flyravn.com) or by email at customerfeedback@ravnairgroup.com so we can gather your information and follow-up accordingly, once we have more news regarding your flight bookings.

I would also ask that you keep checking our website and your email for future updates regarding what’s next for Ravn, and when we expect to be able to restart our airline.

For now, I hope you, your families, and your loved ones all stay safe and healthy during these incredibly trying times.

With my best regards,

Dave Pflieger CEO

Ravn Alaska aircraft photo gallery:

Route Map:

Ravn Air Group acquires the assets of PenAir

Ravn Air Group, Alaska’s largest regional airline, has announced that it has purchased the assets of Peninsula Airways, Inc. and created a “new” PenAir that is officially a member of Ravn Air Group.

Earlier this month, the acquisition of PenAir’s assets by investment affiliates of J.F. Lehman & Company was approved by the U.S. Department of Transportation (“DOT”). The remaining requirements needed to accomplish the sale were finalized, making the transfer of PenAir’s assets into a new subsidiary of Ravn Air Group complete.

As part of Ravn Air Group, the “new” PenAir will ensure that the airline can continue to provide safe and reliable service while simultaneously creating better and more extensive travel opportunities for its customers.

As a subsidiary of Ravn Air Group, PenAir will keep its current name and continue to operate as a separate company under a separate FAA certificate. With the completion of the transaction, PenAir will be a financially sound organization with a significantly enhanced ability to serve the state of Alaska.

PenAir route map:

Ravn Air route map:

Ravn Air Group receives court approval to acquire PenAir assets

Ravn Air Group (Ravn Alaska) issued this statement:

J.F. Lehman & Company’s successful bid for PenAir’s assets was today approved by the court overseeing PenAir’s bankruptcy proceedings. As the owner of Ravn Air Group, J.F. Lehman & Co.’s acquisition of PenAir will protect a substantial majority of company jobs, ensure continuity of operations and service to all PenAir routes, and create stability and better travel opportunities throughout the state.

“We are thrilled with this outcome,” said Dave Pflieger, President and CEO of Ravn Air Group. “It is a win for all parties—our Alaska customers and communities, as well as PenAir and Ravn employees alike.”

PenAir will keep its current name and continue to operate as a separate company under a separate FAA certificate as a subsidiary of Ravn Air Group, which will now have a significantly enhanced ability to serve the state of Alaska.

“Both my father, founder of PenAir Orin Seybert, and I are pleased with the decision of the court today,” said Danny Seybert, PenAir CEO. “This is a win-win for our employee group, AND our friends and customers throughout rural Alaska.”

Earlier this week, J.F. Lehman & Co.’s bid was selected as part of a court-mandated auction of PenAir’s assets conducted by a court appointed Trustee. However, that selection required today’s formal approval from the U.S. Bankruptcy Court in Anchorage. Before becoming final, this purchase must also be approved by the U.S. Department of Transportation and Federal Aviation Administration.

“It is a testament to the strength and fortitude of PenAir employees and the hard work and commitment of all Ravn Air Group team members that JFL was able to pursue the acquisition of such a storied airline, which, like Ravn, has a rich history of serving Alaska,” Pflieger said. “We are all very excited about our collective future and working together toward a shared goal of providing the very best in safety, operational excellence, customer service, and employee pride throughout Alaska.”

Top Copyright Photo: PenAir (Peninsula Airways) SAAB 340B N677PA (msn 328) ANC (Joe G. Walker). Image: 912876.

PenAir aircraft slide show:

Ravn Air Route Map: